Exploring Business Strategies of H&M in the Global Market: A Study

This research project delves into the business strategies employed by Hennes & Mauritz (H&M) as a key player in the global market. The report begins with an introduction to globalization and its impact on the economic landscape, specifically within the retail industry. It then provides background information on H&M, a Swedish international clothing retailer, and outlines the research aim, objectives, and questions. Chapter 2 presents a literature review, examining the impact of H&M's 'fast fashion' model on its global business environment, the benefits derived from its globalized operations, and the influence of globalization on its growth and success. The research methodology, data analysis, and a reflection with recommendations for alternative research methodology are also presented. The project aims to analyze the strategies H&M utilizes to achieve a competitive edge and significant development within the global market. The report concludes with a reflection on the key findings and suggestions for further research.

Research Project

Table of Contents
TITLE .............................................................................................................................................1
Chapter 1: Introduction ...................................................................................................................1
Chapter 2: Literature Review ..........................................................................................................4
Chapter 3: Research Methodology ..............................................................................................8
Chapter 4: Data Analysis ..............................................................................................................11
Chapter 5: Reflection & Recommendation for Alternative Research Methodology.....................27
CONCLUSION ............................................................................................................................28
REFERENCES .............................................................................................................................29
APPENDIX ...................................................................................................................................31
Research Proposal Form...........................................................................................................31
Research Ethics approval form.................................................................................................36

TITLE
What are the business strategies which H & M can use as a key player in the global
market?"
Chapter 1: Introduction
Overview of the Research
Economic process is recognised as the existent procedure that results of human
excogitation and technological advancement or progress. It basically determined to the
enhancing combining of efficiency across the globe, mainly by the movement of products,
facilities and funds around the borderline of a specific region or country. In the economy of 21st
Century, globalisation has changed the system, social group, learning, and political point of view
in a deep and ineradicable way (Alejandra Gonzalez-Perez, 2013). Now a day the economic
system is combined of a trio of interactional forces which involves different economic process,
trade liberalization, and the data application and communications modification. Globalization has
dissolved international boundary line, independent commercialism has increased profitable
segregation, and the data or communications modification has created geographic and time in
dispute. Moreover, the advance economy is reinforced on a appreciation of creation or
innovation. So, the significant grade of the fresh global system is new ideas, new technologies,
and new initiatives. Globalisation is a important concept that performs tremendous duty in
maturation and occurrence of business organisations at global level. Hennes & Mauritz is the
selected business for this particular project. This is a Swedish international clothing
merchandising system. The possible aim of the business is to attain significant development and
competitive edge with the global operations of the firm. This report incorporates the examination
in regards to the effectiveness of globalisation or how it can drive business success.
Background of the Research
Economic process is a broad conception that can plays vast role in the growth and
occurrence of global enterprise operations, thus it is considered as a huge condition which is used
to describe all business operations, in general like governmental, private, investment, sales,
transport and logistics etc. that occurs among two or more regions, countries and nations beyond
their political boundaries (Alexander, 2013). Globalization is perceived as the key angle that
implies a wide region of market wherein little just as huge business associations are allowed to
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assemble relations at wide scale, consequently this construct an incentive in making noteworthy
chances and progress inside the business focus. The associations that are dynamic in worldwide
market are known as transnational business. Transnational business is an endeavour or
corporation which owns significant origin and execute different organisational operations by a
network of subdivision stated in various state and each division form its enterprise plan of action,
that supported on the various industry aspects. Hennes & Mauritz is a multinational clothing
industry, which is famous for its accelerated fashion clothing for men, women, teenagers and
children. Hennes & Mauritz is basically deals in retail industry, The associated organisations of
Hennes & Mauritz operates in around 62 countries with over 4500 stores and the company has
employed around 132000 employees. It is the worlds second largest fashion clothing retail
company. As a large business organisation the significant motive of the firm is to expand its
business operations at global level in the manner of reaching at higher competitive edge, thus
globalised business operations helps an organisation in achieving significant range of
profitability and growth.
Rational of the Research
Investigation into actual action is depend on the effectualness of globalisation and its
impact on the success of business (Apăvăloaie, 2014). Globalisation is reasoned as a huge area of
examination that plays efficient part in processing the functions of an organisation at global
level. This consist to be a wide concept which provide an effective cognition base in footing of
globalisation and how it can drive business success. The researcher conduct the study for the
purpose of self interest, thus this specific region of knowledge assist people in developing their
skills and knowledge base that helps them in achieving maturation and occurrence in their
approaching aspect. In this modern and competitive organisational situation, the possible interest
of each size of enterprise concern is to spread out their organisational operations at
organisational basis in order to attaining potential success and competitive edge within the
commercial centre.
Research Aim
Research point is alludes as the most basic piece of request fill in as it perceived as a
general explanation in which research issue is referenced in clear or brief way (Appel, Franz and
Hassler, 2014). The potential aim of this unique Research is "To analyse the the business
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strategies which H&M can use as a key player in the global market". A study on Hennes &
Mauritz.
Research Objectives
This section of the Research is an essential aspect that helps the researcher in carry out
the Research work in right direction. This part is interlinked with the research aim and
determine the variables in different statements. The significant objectives of this Research work
are described as under:
 To determine the benefits that are derived by Hennes & Mauritz through its globalised
operations.
 To identify the potential impact of globalisation on the growth and success of Hennes &
Mauritz.
 To ascertain the interrelationship among globalisation and business success of H&M. To Analyse different strategies that are employed by H&M as the key player for attaining
success within global market.
Research Questions
Research questions is likewise a significant part of Research that helps the researcher in
executing the piece of writing audit with the help of writers sentiment (Axelrod and VanDeveer,
2014). In this part the announcements are interlinked with the point and goals of the exploration.
The basic inquiries of this exploration are portrayed as under:
How H&M ‘ fast fashion ‘ model affected it’s global business environment?
Sub Questions
 What are the benefits derived by Hennes & Mauritz through its globalised operations?
 What is the potential impact of globalisation on the on the growth and success of Hennes
& Mauritz?
 What is the interrelationship among globalisation and business success of Hennes &
Mauritz?
 What strategies are employed by Hennes & Mauritz as the key player for attaining
success within global market?
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Chapter 2: Literature Review
This piece of the Research plays compelling capacity in organization an inside and out
assessment on the examination issue. It is the second and centre zone of a Research work in
which information and data is being accumulated through auxiliary sources like books, diaries,
papers, magazines, online locales and so on. In this part past investigation work will take a
positive part in examining the real and dependable data to make proper hypothetical structure
with undeniable realities and figure (Bailey and et al., 2018). In this segment legitimate
assessment is given through examining the viewpoint of different writers and essayists who are
giving any kind of data in regards to the comparable territory of the examination.
H&M ‘ fast fashion ‘ model affected it’s global business environment.
According to the opinion of Victoria Eastman, 2015, The accelerated fashion occurrence
change the whole business scenario. It made frequent fashion the dominant retail model which
assure producers to large margin, but it also ensure about social costs. The thought of agitated
commodity quickly from the designer's area to the retail sales floor has impacted the whole
global retail business and pull in rivalry. H&M is recognised as the wider fashion retail in the
globe who is attaining around $21.73B sales in the year of 2015 which is a high growth rate. The
company run at world wide basis and significantly interest over gratifying the desires of
customers at market place through making unique offerings through making appropriate change
in the production as per the need and demand of customers. Fast fashion model has positive
impact over the global business environment of H&M, thus company has attain higher growth
and sustainability through satisfying the fast changing needs and wants of customers at global
level. High brand reputation is the major cause that attracts customers towards the firm or its
offered products and services. Fashion is an emotional commercial enterprise and aside from
H&M’s efficient supply chain, it relies heavily on both its image and brand equity. As such,
H&M is especially sensitive to negative Personal Relationship that are basically executed
through NGOs and regulators. H&M’s approach to date has been proactive and all-embracing,
rolling out multiple initiatives that have put sustainability in the forefront of their particular
buyers’ minds. In fact, H&M has applied its focus on sustainability as a market differentiator
from its peers such as Inditex. H&M Is the leader of fashion industry and has its high brand
reputation which creates value for the firm in increasing sales and revenue. The fast fashion
model helps the firm in analysing the changing needs and demands of customers within market
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and produce goods and services as per the changing demand which assist the firm in capturing a
wide area of market in respect to attaining sustainability of profitability.
The benefits derived by H&M through its globalised operations.
As per the views expressed by Jan-Emile van Rossum, 2017, In the modern business
world, organisations of all sizes are executing business transaction in international class. This
sort of business expansion can provide respective benefits, involving huge opportunities for
market success and variegation. As a large Swedish multinational company Hennes & Mauritz,
is widely focused on rendering significant facilities to their prospective buyers in order to
sustaining them for regular and competitive operations within the commercial centre (Belás and
et. al., 2014). The company has its global business operations and derived various benefits
through expansion of business at international level. Some potential benefits of globalisation are
associated as below:
Competitive advantage: Small and large business organisations are also take global
enlargement to attain a agonistically over their contestant. For example, Hennes & Mauritz is
widely focusses on expanding their business within international markets in which their rivals do
not direct often have a very first-mover benefits and allows them to create high brand
regionalisation among buyers before their rivals. Now a day's the key consideration of each
business organisation is to providing high competition to their rivals in order to achieving
potential position in the commercial centre.
Access to talent: It is an another benefit and globalisation is opportunities in order to
access the new talent. Under this, global labour can provide the firms effective benefits in
context to enhanced productivity, diverse educational backgrounds, advanced language skills and
many others (Belás and et. al., 2015). As a large business concern Hennes & Mauritz is widely
focused on hiring fresh and new talent in respect to strengthen its workforce. Thus, this create
value in rendering good and effectual services to their customers at global level.
The potential impact of globalisation on the growth and success of Hennes & Mauritz.
According to the opinion of Alfredo Alvarez, 2018, Globalization can be determined as
the procedure in that every size of business concern are reflects to evolve their global influences
or start functioning in a scale that is global. Thus in this organisations are widely concern on
developing their business operations within and out side of the boundaries. further more this
create value in large customer reach of an organisation. Economic process has nowadays
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become much famous and has brought huge influence in the global system or organisation. For
instance, globalization has also been recognised as the potential aspect that change the fashion
industry in one way or another for the purpose of generating more profitability and revenue.
Globalisation helps Hennes & Mauritz in increasingly integrating in the global market. Hennes &
Mauritz is the most popular and leading fashion retail company which is widely concerned on
increasing the performance of the firm through developing its offerings within the large scale
market (Beynon-Davies, 2013). Globalisation has a huge influence on the growth and success of
Hennes & Mauritz. Some potential impacts are associated as under:
High customers reach: In this recent organisational situation, the potential objectives of
every size of firm is to enhancing their market reach in order to achieving potential profitability
and occurrence in the competitive business place. Customers are the key element of the firm as
the primary concern of each business is to gratifying the preferences and requirements of an
individual within the commercial centre. Now a day customers are very much concern about the
quality of the product rather than the price thus As a large multinational fashion industry, Hennes
& Mauritz is focused on grabbing the attention of people towards its products and services with
the help of globalised business operations and providing highly qualitative products to their
users. Thus this create value in attaining higher growth and success.
Increasing brand awareness: The potential impact of globalisation is the increasing
brand awareness, however effective globalised business operations helps the firm in developing
its brand image within the market place (Brown and Lauder, 2012). This also create value in
providing high competition to their rivals within the commercial centre.
The interrelationship among globalisation and business success of H&M.
According to the views of Zaw Thihu Tun, 2018, In the year of 1947, Swedish
multinational retailer Hennes & Mauritz is considerably most recognisable brand of fashion. As
per the estimation H&M has around 4000 stores at global level and widely focused on make the
number of stores to 7000 to 8000 in the future. Globalization has performed a vast role in the
fashion industry; in fact, the continuous change in the fashion industry is arguably among the
most essential impact of globalization. As a significant outcome of economic process, the
fashion commercial enterprise has gaping up to a wide variety of new styles, power, and tools of
manufacturing. Consequently, fashion direction have become more readily reliable and
accessible to buyers all over the globe. Globalization has thus transformed the mode of fashion
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trends are transmitted and the way the clothes are manufactured (Carneiro and Brenes, 2014).
However, the relationship between fashion and globalization is a convoluted and multi-
dimensional physical process that belongs of many parts, not all of which are positive.
Globalisation has positive interconnection with the growth and success of Hennes & Mauritz,
thus with the help of globalised business operations organisation is able to increase their
customers reach which create value in attainment of higher growth and profitability within the
commercial centre.
Different strategies that are employed by Hennes & Mauritz as the key player for attaining
success within global market.
Strategy is a pre-determined course of action made by managers to achieve organisational
objectives. It defines the mission,vision,objectives and goals of an organisation. A Strategy is all
about integration of organisational activities,utilization and allocation of scarce resource within
the business surroundings. It is regarded as a blue print of business which helps to bridge the gap
between “where we are today” and “where we want to reach in future”.
Strategies employed by h&m for attaining success in the global market
According to Zaw Thiha Tun, 2018, H&M adopted the 'Fast-fashion' model. The idea
behind this model was to transfer large lot of goods from the table of designer to the store or
outlet in shortest possible time. The brand kept a close check on the continuous changing fashion
environment in the global market and based on the latest fashion styles and trends,they use to
create new designs. Rather then producing more styles ,they focussed on producing different
styles. The secret behind success of H&M was largely driven by its ability to showcasing its
collection with a very little delay. They majorly focussed on providing stylish yet fast fashion
and are communicating their brand by using a magazine format of stylised imagery with mood-
setting text.
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Chapter 3: Research Methodology
This considered as the key part of request fill in as it helps the Research in giving suitable
manner to execute the investigation exercises in right way. Research technique alludes as a
composed, abstractive assessment of the apparatuses that are utilized to a chose territory of work
(Cavusgil and Knight, 2015). It predominantly involves as an abstractive Research of the
structure of various strategies and standards which are related with a subdivision of cognizance
and information. This piece of the Research depends on various applications that are successful
in helping the general exercises efficient way.
Type of Research Research : A Research work is basically based on an issue and the
major duty of the researcher is to overcome with the research issue by collection of relevant and
reliable data and information. A research is based on two different types one is qualitative and
another one is quantitative research method. In the existing Research piece of work quantitative
Research tool has been used by the Research thus it is the best source for creating appropriate
results through conducting in-depth analysis on the research issue.
Research Approach: This is fundamentally connected component of Research technique,
consequently there are two kind of conceptualization that are rely upon the sort of Research like
as inductive and deductive Research approach. The deductive methodology depends on making
new or advance speculations that supports the theory and in inductive methodology information
has been collected by the execution of an efficacious estimation on accessible information with
certainties or assumes that are going with the hierarchical work. In this current Research work,
inductive research approach has been connected by the Research in this manner the Research is
rely upon the quantitative perspectives (Coe and Lee, 2013). This methodology helps in making
solid and precise data for do Research tasks in proper way, likewise this is the most reasonable
device for execution of quantitative data.
Research Philosophy: This is recognised as the important aspect of Research report,
which assist the Research in execute the work in right direction. Research philosophy is
categorized among two section which are interpretivism and positivism. In the present
exploration work, researcher centred on applying positivism research philosophy as it aid in
rendering quantitative analysis by which the researcher is able to examine the data at different
horizon. This aspect is effective in rendering positive knowledge which is significantly based on
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natural phenomenon and its proprieties or relations. This philosophy is effective in analysing
quantitative data and drawn accurate outcome.
Data Collection Tools: It is the key part of Research venture as the general Research
tasks depend on information and data that are gathered by the Research . For complete a
Research work, two essential kind of information gathering tools like primary and secondary
source of information collection are there. In the current Research report, both primary and
secondary tools are utilized in the report to supporting the issue with appropriate information and
data. Along these lines primary tool is powerful in leading an overview with the assistance of
survey. Anyway survey is viewed as the most suitable tool of essential information accumulation
with established facts and figures (Cohen and Kietzmann, 2014). Then again, secondary sources
like books, diaries, paper, past research venture, articles and so on are successful in execution of
literature review through the proper help of writers perspective. Appropriate usage of these two
instruments are successful for making legitimate or solid result for the examination. primary
information is the real thought of a specialist, accordingly in this survey is being readied and
filled by the chose respondents who are having at risk data with respect to the comparative
region of study. Questionnaire is the key tool of the information.
Data Sampling: This can be evaluated as the method of sampling that based on select the
illustration that reduplicate through the actual aggregation of people. It is supported on
researcher to either select probabilistic or non-probabilistic sampling tools. In the existing
exploration work, Research is going to choose purposive sampling technique so it is necessary
for them to choice befitting sample of population. In this researcher select the sample of 40
respondents. In this organisational employees are the respondents who are having significant
knowledge and idea about the operations of the firm.
Ethical Consideration: Conflicts can arises in any situation, for administration of any
work conflicts and issues faced by the Research and for this it is essential for an Research to
build some resolution plans in respect to overcome with them (Colen, Maertens and Swinnen,
2012). The researcher performs most essential function in each Research work by accumulation
of reliable and proper data and information with the help of different origins or aspects. The
potential obligation of the researcher is to support the private data confidential. build an
Research framework in which all activities can be executed in appropriate way. During the
survey will also ensure their respondents about not asking any kind of personal information that
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hurts their emotion of sentiments. It is also needed for the Research to see time and cost as their
central aspects because these are also needs to be managed in order to windup of the research
operations in suitable way.
Time Scale:
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